Management Skills Final Rutgers

What is negotiation?

-A process in which two or more people or groups share their concerns and interests to reach an agreement of mutual benefit

programmed decisions

-Decisions encountered and made before, having objectively correct answers, and are solvable by using simple rules, policies, or numerical computations

dysfunctional

-Hinders group performance •Poor communication •Reduces group cohesiveness •Ignores group goals •Infighting between members -Could lead to the destruction/dissolution of the group

functional

-Improves the group's performance -Improves the quality of decisions •Stimulates creativity and innovations •Encourages interest and curiosity among group members •Provides the medium through which problems can be aired and tensions released •Fosters an environment of self-evaluation and change

Why Negotiate?

-Interdependence -People need to be able to work together across business units and divisions -Dynamic nature of business -People must continually create possibilities, integrate their interests with others, and recognize the inevitability of competition both within and between companies -An increasingly diverse set of customers/clients/partners -Increased inter/intra-organizational competition

Non programmed decisions

-New, novel, complex decisions having no proven answers

Group decision making

1. Conformity 2. Group Polarization 3. Groupthink 4. Social Loafing

Three Strategies to Enhance Decision Making

1. Decisional Balance Sheet 2. Problem Definition/Framing 3. Pre-Mortem Exercise

Additional tactic for interpersonal information ....establish

1. Establish your credibility demonstrate expertise, integrity, trust need to take an honest assessment of where you stand before you begin to persuade

Two Types of Influence Tactics

1. Interpersonal- influencing individuals and or group members 2. Procedural- managing rules or procedures used to exchange information and combine individual preference

Cialdini's 6 principles of influence

1. Liking 2. Reciprocity 3. Social Proof 4. Consistency 5. Authority 6. Scarcity

Group Decision Making in Organizations

1. consultative 2.consensus 3. democratic

Three models of decision making

1. the rational model-managers use a rational approach to decision making 2. bounded rationality-people are restricted in the information they possess, conduct a limited search for solutions, and settle for less than optimal solutions 3. garbage can model -decision making is haphazard, chaotic, unpredictable, and sometimes depends on luck

consensus

1.: leader shares problem and together they generate/evaluate problem/solutions

Technique #3: Osland's Pre-Mortem Exercise

1.Preparation: Individuals thoroughly review the plan 2.Imagine a fiasco: Decision-makers imagine that the project or plan is a complete and utter failure. What could cause this? 3.Generate reasons for failure: Individuals write down all the reasons why they think the failure occurred. 4.Consolidate lists: Each individual states one reason for failure until all reasons have been shared. 5.Revisit the plan: Individuals address two or three issues of major concern. Another meeting is scheduled to discuss all remaining issues. 6.Review the list: Individuals review the list of concerns to make sure that all concerns have been addressed.

Additional tactic for interpersonal information ....frame

2. Frame for common work describe advantaged of your perspective and highlight shared benefits

Distributive Bargaining

A negotiation strategy in which one person gains and the other person loses

Obstacles to decision making #1 Biases

A preference of inclination for or against someone/something that can inhibit impartial judgment

Harmful Conflict

A-type, "affective conflict" or "relational conflict" is about individual issues. Blocks communication and draws the focus from the team to the individuals. Limits communication to a few people and decreases the quality of work. Decreases the likelihood that people will accept final decisions and work together well in the long-term. Teams LESS focused, creative, integrative and open.

why might managers not follow the rational model?

All information may not be available, assumptions, may not have all the resources, inferior, time consuming to way in all options its costly, stubborn and biased

Additional tactic for interpersonal information....build

Build coalitions identify and form strategic alliances persuasion involves compromise

Helpful Conflict

C-type conflict, "cognitive conflict" or "task conflict" is conflict about task-related issues encourages open communication enables people to learn from each other, and to consider each other's views ... then they'll be more likely to accept whatever the final decision is, too. This benefits team effectiveness because teams will be focused, creative, integrative and open.

structure

Conflict can occur when the organization or team structure creates ambiguity in who is responsible for what •Conflict between groups --- COMPETE -Competition for limited resources -Differing priorities and goals -Asserting their ideas •Conflict within groups --- ROLE FORMALIZATION -Overlapping or unclear job boundaries -Unreasonable or unclear policies, standards, or rules -Unreasonable deadlines or extreme time pressure -Collective decision making

Additional tactic for interpersonal information....connect

Connect emotionally show emotional commitment to your position and be in sync emotionally with your audience

Procedural Influence tactic #1

Controlling what goes on in the agenda -what issues to consider? -amount of time spent on each topic?

Personable Variables

Different personal styles or personality can create tension •Incompatible personality traits -E.g., introvert vs. extrovert; Type A vs Type B •Differing value systems -E.g., shop floor vs. c-suite

Stage 3: Intention to Manage Conflict

Each conflict category reflects varying levels of the following two dimensions: 1.Assertiveness à the extent to which the individual attempts to satisfy his or her own concerns 2.Cooperativeness à the extent to which the individual attempts to satisfy the other person's concerns

Additional tactic for interpersonal information... Ev

Evidence provide data, vivid examples, and stories compelling and tangible quality

Nominal Group Technique:

Generating and evaluating alternative solutions to a problem

the rational model

Goal is to identify the optimal decision Assumes that all information is available and complete Benefits of using this model: The quality of decisions may be enhanced It makes the reasoning behind a decision transparent

Stage 4: Behavior

Intention to manage conflict--> Individual's behavior/other's behavior.

Reservation (Resistant) Price:

Least favorable point to accept an agreement -"Bottom line" price -For the Buyer, it's the most they are willing to pay -For the Seller, it's the least they are willing to sell for

4.Consistency

People align with their clear commitments people commit.... 1. Actively- choice spoken out loud, written down, or made explicitly 2. Publicly- choice shared with others either spoken or written 3. Voluntarily - personal ownership example: emailing or signing off of something

The Kolb Model of Group Problem Solving

Problem solving does not proceed in a logical, linear fashion from beginning to end. It is more wave like, characterized by expansions and contractions—moving outwardly to gather information and then focus inwardly for analysis/decisions •Green Light/Red Light •Believing/Doubting •Divergence/Convergence

Target Price

Realistic view of getting the highest achievable outcome from a negotiation

Procedural Influence tactic #4

Shaping how decisions are made -decision rule -voting format

1. Liking

Similarity and Praise individuals comply with requests from individuals or friends examples: similarities (shared interests), compliments or praise, cooperation

3. Group think

Tendency for members of a group to value group consensus and cohesion over the critical evaluation of the decision. -Extreme reluctance to communicate disagreements; no dissent remedies -Voice objectives and doubts -Form subgroups to discuss critical issues before they are raised -Use outside experts -Have someone play the role of devil's advocate -Leader impartiality

Stage 1: Potential Opposition

Three conditions for conflict 1. communication 2. Structure 3. personable variables

Problem Analysis

What are the Causes of the Problem? •Role: DETECTIVE •Information Gathering •Problem Definition

Solution Analysis

What's the Best Solution? •Role: INVENTOR •Idea Getting •Decision Making

Procedural Influence tactic #5

Who sits where -seating position determines leadership -table configuration encourages collaboration

Procedural Influence tactic #3

Who speaks when -speak early to frame discussion? - pick an ally to speak first

1. conformity

a change in belief or behavior to fit in with the group

Devil's Advocate:

assigning someone the role of critic why?forcing the other team members to justify their decision. Avoids groupthink. higher quality decision

Insensitivity to sample size:

assume small samples not representative

Fundamental attribution error:

attribute behavior to personality traits rather than situational factors

Hindsight bias:

believe something was inevitable after it happened

The Dialectic Method:

calls for managers to foster a structured debate of opposing viewpoints prior to making a decision method is a discourse between two or more people holding different points of view about a subject but wishing to establish the truth through reasoned arguments. higher quality decision

Base rate fallacy

choose to rely on single, vivid data point rather than more reliable data

satisficing

choosing a solution that meets some minimum qualifications, one that is "good enough"

Escalation of commitment

continue to irrationally invest in an ineffective course of action due to sunk costs

Garbage Can Model

decision making is sloppy and unorganized decision results from complex interaction of factors, including problems, solutions, participants and choice opportunities—all floating randomly inside an organization Act swiftly short cuts

bounded rationality

decision-makers are "bounded" or restricted by a variety of constraints when making decisions ( time, money, technology, resources) results in not identifying all solutions satisficing -Satisfactory over optimal solution generated

primary effect

first info we learn alters impression

Stage 5: Outcomes

functional and dysfunctional

decision making

identifying, evaluating, and choosing between alternatives that lead to desired results

Personal barriers to communication

individual attributes that hinder communication

Procedural Influence tactic #2

influencing group norm -allow criticism? -limit talking time?

Consultative

leader consults with members

Availability bias

make decisions based on information readily available

Representativeness-

make judgments on basis of stereotypical cues or information rather than more deliberate processing

Obstacles to Effective Decision Making : Faulty perceptions about others- negative effects

once we learn negative info about someone, tend to put a lot of weight on that info

Halo effect

one attractive trait = other attractive traits

Positions

one party's stance regarding the issue (stated agenda)

Forked tail effect:

opposite of halo effect: one undesirable trait = other negative traits

5.Authority

people defer to experts people follow suggestion of people of legitimate authority

3. social proof

people follow the lead of similar others People feel obligated to comply with request for behavior if it is consistent with what others are similarly doing

2. Reciprocity

people repay in kind people feel obligated to give back the form of behavior they receive managers can elicit desired behavior by modeling it examples: trust, a spirit of cooperation, pleasant demeanor

6.Scarcity

people want more of what they cant have people see items and opportunities more valuable as they become less available ex: exclusive info is better than widely available information

physical barriers to communication

physical noise, time zone differences, physical distance, office design, etc.

democratic

problem given to group and members empowered to make the decision

Obstacles to decision making #2 Heuristics

rules of thumb or shortcuts that people use to reduce information processing demands -Can help decision makers reduce uncertainty but can lead to errors that erode the quality of decisions

obstacles to decision making-Egocentric bias

see self as contributing more (give ourselves more credit than others give us and more credit than we give others) (LoC , fundamental...)

obstacles to decision making - False uniqueness

see self as favorably; as unique from others

2. group polarization

tendency for group decisions or opinions of a group to become more extreme

5. Social Loafing

tendency for individual effort to decrease as group increases -Task perceived as being unimportant or uninteresting -Group members feel their individual output is not identifiable -Shared reward so no incentive to contribute more -Coordination loss as more people perform the task remedies -Ensure tasks are challenging and important -Emphasize personal accountability

obstacles to decision making - illusion of control

tendency to believe that we exert more influence over situations than we actually do

•Framing:

tendency to consider risks about gains differently than risks pertaining to losses

obstacles to decision making - overconfidence

unwarranted confidence in judgment; overestimate accuracy of estimates or forecasts

obstacles to decision making -self serving bias

view self in positive light; attribute success to internal qualities and failures to circumstances beyond our control •(locus of control) we blame the world point fingers

Conflict

when one party believes another party has or is about to do something that will negatively effect something they care about

Semantic Barriers to communication

words themselves Jargon - language, acronyms, or terminology specific to a profession, group or company Buzzwords - overused words, faddish phrases (e.g., "transparency")

Anchoring and Insufficient Adjustment

•: influenced by the first information received, even if it's irrelevant (e.g., first impressions anchor our decisions)

BATNA:

•Best Alternative To a Negotiated Agreement -Alternative if no agreement reached -The better the BATNA, the more power you have in negotiating

What are the root causes of poor decision-making?

•Capital •Time •Tech •Bias like over confidence

Stage 3: Intention to Manage Conflict - 5 Styles

•Competing: Assertive and uncooperative; all about you •Accommodating: Unassertive and cooperative (the opposite of Competing); self sacrifice, yielding •Avoiding: Unassertive and uncooperative; avoiding the conflict; withdrawing •Collaborating: Assertive and cooperative (the opposite of Avoiding); working together to find a solution that fully satisfies the concerns of both •Compromising: Intermediate in both Assertiveness and Cooperativeness - finding a mutually acceptable solution that partially satisfies both parties; seeking middle ground

1. Decisional Balance Sheet

•Consideration in four different areas: 1.Gain/losses for self (e.g., income, free time) 2.Gain/losses for others (e.g., how does this decision affect family, friends, coworkers, customers, etc) 3.Self-approval or disapproval (e.g., pride, shame, alignment to ideals/values, etc.) 4.Approval or disapproval of others (e.g., will my friends feel I made the right choice, will I be criticized or ridiculed, will I be praised and respected, etc.) •Evaluate the positive and negative aspects of each area •Answers can be influenced by informational inputs and persuasive arguments •Completeness and accuracy when filling in the decisional balance sheet before implementing a decision is critical

•Green Light/Red Light - The Kolb Model

•Green mode = Expansive Phases •Creative imagination •Sensitivity to the immediate situation •Empathy with other people •Red mode = Contraction Phases •Analysis •Criticism •Logical Thinking Coping with the External Environment Think of the green mode as diverging to gather information and ideas, and the red mode as converging on a decision that allows the group to proceed to the next stage.

Technique #2: Bazerman's Problem Definition

•Obtaining a broader perspective of the problem through a wider search of information 1.Define the problem •Selecting the right graduate school 2.Identify the criteria necessary to judge the multiple options •Location, prestige, faculty, etc. 3.Weigh the criteria •Rank #2 in terms of importance to you 4.Generate alternatives •The schools that admitted you 5.Rate each alternatives against each criterion •Rate each school on each criteria that you identified 6.Compute the optimal decision

Implementation Analysis How do we Implement the Solution?

•Role: COORDINATOR •Participation •Planning

situation analysis

•Role: LEADER •Visioning/Exploration •Priority Setting whats the most im

The Stages of Decision Making

•Stage 1: Situational Analysis What's the most important problem? •Stage 2: Problem Analysis What are the causes of the problem? •Stage 3: Solution Analysis What's the best solution? •Stage 4: Implementation Analysis How do we implement the solution?

Problem solving

•The essence of management is problem defining and problem solving -Empowering employees and gaining their commitment -Developing employee skills -Final decisions are better understood by the group -Generating more alternative solutions/ideas

Stage 2: Cognition & Personalization

•The perception of conflict arises between the parties •Emotions begin to get involved. In order for personalization to occur, the parties must feel that there is conflict via stress, anxiety, anger or frustration, resulting in emotional involvement •Once conflict arises, individuals must make a decision on how to handle the problem

Bargaining Zone (ZOPA):

•Zone of Possible Agreement -Range between reservation prices

Procedural Influence

•influencing the way that the group as a whole makes decisions or gets things done •Techniques for influencing the rules or procedures used to exchange information and aggregate individual preferences - that is, for managing the group as a whole

confirmation bias

•subconsciously seek information that confirms our expectations and discount information that does not (e.g., reinforce what we already know)

Interests

•underlying concerns that would be affected by the resolution (hidden agenda) •The private interests of the negotiator behind the positions